‘A financial crisis for our city’

North Battleford Mayor Ryan Bater said he would like SUMA to take the lead in such a case. He said North Battleford will also consider legal action. “We have to explore every option. We don’t have a choice,” he said.

Bater estimated North Battleford will have to raise property taxes by nine per cent on top of a planned three per cent this year to cover the lost revenue instead of cutting services.

“This is nothing short of a financial crisis for our city,” he said. “I can say very confidently that we did not see this coming.”

Prince Albert Mayor Greg Dionne said his city’s property taxes will need to increase 6.5 per cent on top of a planned 1.5 per cent to cover the loss. His city supports Saskatoon’s decision to take the province to court, and may consider providing financial support for Saskatoon’s legal action, he said.

“Just because the government says they can do it doesn’t mean it’s true.”

Many affected municipalities are still scrambling to figure out what the shortfall will mean for them.

“We’ll probably be looking at a mixture of cuts and, obviously, we’ll have to pass some of this on. We can’t absorb all of the negative tax implications handed to us,” Estevan Mayor Roy Ludwig said. His residents could be looking at a 13 per cent property tax increase this year unless the province reverses its decision or services are cut, he said. Estevan council was scheduled to have an emergency budget meeting Monday night.

Yorkton Mayor Bob Maloney called it an “unprecedented hit” and suggested higher than expected tax increases are now likely. That’s the only way for his council to raise money, he noted.

“(The province) did the spending, and now they’re asking us to pay the bill.”

Government Relations Minister Donna Harpauer has suggested cities dip into reserves to cover the loss, saying everyone needs to “share the pain” of an “extremely tough budget.”

“Year over year we have significantly increased the revenue sharing and I don’t think the intent of the revenue sharing is for (cities) to build their bank accounts,” she said.

Barnhart said it simply doesn’t make sense for cities to pillage their reserves. The more money in them, the higher a city’s credit rating is, which helps them borrow money for big projects at lower interest rates. Reserve funds are also vital in emergencies.

“If we now start to take money away from the reserves and put them into operating just to cover the shortfall from the government, that money will soon be gone and then what do we do?” Barnhart asked. “That’s not really an option.”